ORGANIZATIONAL BEHAVIOUR

Topic Company Name Roll No. Class Institute

: MOTIVATION : Mc Donalds :Saahil Ledwani : 147 : MHRDM : Mumbai Educational Trust (MET)

TABLE OF CONTENTS

1. COMPANY PROFILE 2. ORGANISATIONAL CULTURE 3. MOTIVATION AT Mc DONALDS 4. FINDINGS AND CONCLUSIONS 5. RECOMMENDATIONS 6. QUESTIONNAIRE 7. REFERENCES 8. BIBLIOGRAPHY

ACKNOWLEDGEMENTS: It would not have been possible for me to complete this project without the help of many people. I would like to extend my sincere thanks to all of them. I am highly indebted to Prof. D.I.CABRAL for his valuable guidance as well as for providing necessary information regarding the project & also for the support in completing the project.

I would like to express my thankfulness towards members of Mc DONALDS (High Street Phoenix) especially Mr Suresh Rai (Manager) for their kind cooperation and timely help which made me successfully complete this project.

COMPANY PROFILE: McDonalds is a leader in convenient foods and beverages over 1.6 million employees serving the customers worldwide .The company consists of the snack business of Beverages and foods. Mc Donalds success is the result of superior products,high standards of performance,distinctive competitive strategies and the integrity of our

people.Mc Donalds is continuing to expand and introduce new alternative beverages in the market.Approximately 85% of Mc Donalds restaurant business worldwide are owned and operated by franchisees.All franchisees are independent,full-time operators.Mc Donalds was named Enterpreneurs Number-one franchise for 1997. Their mission is to be the worlds premier consumer Products Company focused on convenient food and beverages.They seek to produce healthy financial rewards to investors as they provide opportunities for growth and enrichment to their employees, their business partners and the communities in which they operate.And in everything they do,they strive for honesty,fairness and integrity they could now join their team.Greater variety and quqlity choices surprise and delight customers with the food and beverage they desire Mc Donalds products are recognized and are most respected all the globe. Currently,its devisions operate in all over the world in beverages,snack foods, and restaurants.The corporation increasing success has been based in high standards of performance, marketing strategies, competitiveness,

determination,commitment, and the personal and professional integrity of their people,products and business practices.They believe their success

depends upon the quality and value of their products by providing a safe ,whole some,economically efficient and a healthy enviroment for their customers, and by providing a fair return to their investors while maintaing the highest standards of integrity. Period Jan. 2008 Jan 2009 No. of outlets 30567 31,000 Countries 113 120

McDONALDs India

McDonalds India is a locally owned company managed by Indians. In Mumbai Amit Jatias company, Hard castle restaurants Pvt. Ltd., owns and manages McDonalds restaurants. In Delhi, McDonalds restaurants are owned and managed by Vikram Bakshis Connaught Plaza restaurants Pvt. Ltd. Both these individuals are responsible for the running of McDonalds India.

ORGANIZATIONAL CULTURE The overall image and local reputation of McDonalds as an employer is shaped daily by many factors, including the benefits programs, compensation package, fun working place coupled with numerous enthusiasm activities, employee development programs, and other world renowned best people practices.

Employees, the key ingredient play a vital role each day in shaping our McDonalds all employment image through their performance behavior. Realizing its people strength it provides the best employment experience to employees in order to achieve the goal of giving the worlds best quick-service restaurant experience to our valued customers. It strives to recruit the best, hire the best, and provide the best place to work. Best employees are those who can befit themselves in the culture of McDonalds. The outlook of its organizational culture is congruent with what happens internally. McDonalds is a place where people of all ages love to go to while hanging out, having hunger or during their leisure hours. McDonalds is not only a fun place for its customers but also for its employees.

The commitment to its employees is shaped on the simple fact We value you, your growth and your contributions and this is what we strive to achieve through our actions every day. Five principles guide the commitment Respect and Recognition: Every employee is consistently treated with dignity and respect. All employees are valued and recognized for their contribution to the organization.

Values and Leadership Behaviors: Every employee is a leader who listens and communicates openly and honestly and every employee acts in the interest of all other people who contribute to the success of the business, including customers, owner, and suppliers.

Total Compensation: To recognize the people part in the business success, the Pay and Rewards program follows a Pay-for-Performance philosophy, the better results produced by employees, the greater pay opportunities.

Learning, Development and Personal Growth: Employees has the opportunity to advance in skill, contribution and career level through high-quality training, coaching and feedback.

Resources to Get the Job Done: It is ensured that a comfortable place to work with access to the materials, equipment and information has been provided to do the job.

STEPS TAKEN BY MC DONALDS TO MOTIVATE AND RETAIN EMPLOYEES Meeting with the personnel at Mc Donalds(Phoenix Mills) made me aware of the following: Benefits They strive to hire and keep the brightest and the best. And to do that, Theyve put together perks designed to make you smile even before you pick up your paycheck. From flexible schedules and competitive wages to management training and investment opportunities, their benefits let employees know youre a valued part of our team. Restaurant Crew Benefits You dont have to achieve upper-level management status to reap the rewards. When youre a part of our restaurant crew, youll enjoy a competitive wage, a schedule that fits your needs, a team thats there to support you in every way, and a workplace thats close to wherever you need to be. Its a great way to earn extra income for anyone, from students to moms and dads.

Competitive wages Free uniforms* Free or discounted meals Flexible hours Medical insurance* Prescription drug coverage* 24-hour nurse line access Vision discount* Available dental*

PAY AND REWARDS

Base pay Incentive pay Company car program Recognition programs

Their pay and rewards program follows a "pay for performance" philosophy: The better are employees results, the greater your pay opportunities.

Base Pay Because employees' base pay is the most significant portion of their compensation, McDonald's maintains the competitiveness of our base pay through an annual review of both external market data and internal peer data. In our corporate, division and region offices, McDonald's has a broadbanding compensation system. Broadbanding allows for flexibility in terms of pay, movement and growth. Incentive Pay Incentive pay provides our employees with the opportunity to earn competitive total compensation when performance meets and exceeds goals. For corporate, division and region offices, the Target Incentive Plan (TIP) links employee performance with the performance of the business they support. TIP pays a bonus on top of employees' base salaries based on business performance and their individual performance. Long Term Incentives Long term incentives are granted to eligible employees to both reward and retain key employees who have shown sustained performance and can impact long-term value creation at McDonald's. Recognition Programs Mc Donalds recognition programs are designed to reward and recognize strong performers. For our corporate, division and region offices, these include the Presidents' Award (given to the top 1% of individual performers worldwide) and the Circle of Excellence Award (given to top teams worldwide to recognize their contributions for advancing our vision). Company Car Program The company car program provides eligible employees with a company car for both business and personal use. If eligible, employees can choose from a variety of vehicles, depending on their level within the company. The program covers the cost of insurance, maintenance and repair.

Helping Balance Work and Life Balancing work with your life outside of it can be challenging. McDonald's believes that it's important to strike the right balance. That's why we offer many programs designed to help our employees maintain or regain the right balance. Vacation, Holidays McDonald's offers paid vacation for corporate, region and division office employees as well as Restaurant Management employees. The amount of vacation time employees have available depends on how long they have worked at McDonald's. In addition, McDonald's offers nine paid holidays (less for part-time workers) for eligible employees. Anniversary Splash Eligible employees get an extra week of paid time off in the year when they reach an anniversary on the fives their five, fifteen, twenty-five or thirtyfive year anniversary. Sabbatical Program Eligible employees can take an eight-week sabbatical for every 10 years of fulltime continuous service with the company. Short Fridays From mid-May through mid-September, McDonald's corporate, division and region offices' work hours begin a half hour early in order to end early (1:00) on Fridays. Leave of Absence Because employees may be faced with difficult situations that require them to take time from work, McDonald's provides a leave of absence program with specific policies regarding types of leave such as family and medical leave, adoption leave and funeral leave.

Alternative Work Approach To help corporate, division and regional office employees better balance their work and personal life, they may be able to arrange an Alternative Work Approach. There are two full-time options (flex time and compressed work week) and two part-time options (part-time schedule and job sharing). Adoption Assistance The adoption assistance program helps employees afford the costs associated with adopting a child under age 18.

Child Care McDonald's has agreements with three national child care providers Childtime Learning Center, Knowledge Learning Corporation and La Petite Academy - for a 10% discount on tuition for employees. (They do not offer discounted rates for children under age 2.) Educational Assistance Our educational assistance program helps support eligible employees in their efforts to further their education. Employees can get reimbursed for 90% of eligible expenses, up to a maximum of $5,250 a year ($2,000 a year for parttime employees), for grades "C" and above. Matching Gift Program Our matching gifts program is designed to encourage employee support of notfor-profit organizations. With this program, McDonald's matches employee gifts to qualified educational, civic, cultural, health and youth organizations with one dollar for every dollar the employee contributes, up to $5,000 a year. Employee Resource Connection This program gives eligible employees access to a broad array of services that help them manage many facets of their life outside the office, including: Concierge services, for help in finding resources for almost anything employees may be interested in; financial services, for help with subjects such as setting a budget, getting out of debt, and any other financial information; legal services,

for legal information and, if necessary, referrals to qualified attorneys; and counseling services for professional, confidential assistance for managing problems and personal concerns. International Fitness Club Network Employees can receive discounts on new membership or other rewards for existing membership at participating clubs nationwide, plus discounts on home fitness equipment, and online health and fitness information. Auto and Home Insurance Program McDonald's employees can purchase auto and home insurance through the MetLife Auto and Home Insurance Program. The MetLife Auto and Home Insurance Program offers a McDonald's group rate plus other advantages. BeyondWork BeyondWork is a free Internet discount program for recreational products and services. McDonald's employees in the U.S. can go online 24 hours a day, seven days a week to BeyondWork's site and find valuable resources and savings on popular products and services.

FINDINGS & CONCLUSIONS Motivation is one of the reasons why Mc Donalds has able to create such an worldwide spread network of outlets successfully. At the end if the employee is highly motivated this will boost his performance on the job an indirectly will affect the business or vice versa After the Research on the following study I have come to a conclusion that motivation plays a very important part in the functioning of Hospitality business. Motivation directly and indirectly increases both revenue and goodwill which is evident in this project.

RECOMMENDATIONS THERE ARE CERTAIN RECOMMENDATIONS AS GIVEN BELOW. McDonalds is the largest catering service provider in the world in terms of system-wide sales and a pioneer in thefast food industry. It is found that the McDonaldsemployees are demotivated due to different reasons. Forovercoming the problems, the researchers suggest somerecommendations such as: (a) I t has been found that the employees of McDonalds are not satisfied with the type of incentives they get. i .e. the incentive available is job satisfaction (maximum). However Increasing cash incentives would be a better option in favour of the employees. (b) Another disadvantage is that only 55% of employees(in my project study) were satisfied with the working hours.Efforts need to be taken to improve this (c) Finally, by going through these facts, it could be stated that the managers in McDonalds apply Taylors scientific theory at work. They tend to make employees work harder and supervising them closely with the intention to achieve the maximum level of output. (d)Employees tend to possess an instrumental mentality asthey do not take the job in McDonalds as their futurecareer. In fact, they are working in McDonalds for theirsurvival in order to cover for their daily expenses.

QUESTIONNAIRE: 1. What motivates you working in MC Donald.? a) salaries b) working conditions c) Other

15%
salaries

10% 15% 60%

Working condition Promotion Rewards

2. Are you satisfied with your salaries? a) Yes b) No

00 15%

Satisfied Dissetified

85%

3. Do you get incentives? a) Yes b) No

00 10%

Yes

No

90%

4. Which type of incentives do you get? a) job assurance b) different types of perks c) cash incentives
0 20%
Job assurance perks Cash

45%

35%

5. How is your relationship with the manager? a) Very good b) Good c) Average
0 20%

Very good Good

10% 70%

Average

6.How is your relationship with your peer group? a) Very good b) Good c) Poor
0 5% 15%
Very good Good

80%

Poor

7. Are you satisfied with the working hours? a) yes b) No

00

45% 55%
Yes No

8. Did you tried to get the job somewhere else? a) Yes b) No

00 15%

Yes

No

80%

REFERENCES

http://www.mcdonalds.com/us/en/careers.html http://en.wikipedia.org/wiki/McDonalds www.aboutmcdonalds.com/ http://www.scribd.com/doc/21167331/Mcdonalds-Project-Report www.mcdonalds.com

BIBLIOGRAPHY

Human Resource Management: C.B.Gupta Personnel Management: Monappa and Saiyadain